Iranian inflation rates have hit 9.7% for the third month in a row, on the back of a surge in local demand. Though still on the high side, the near-10 percent still falls far below the 30% inflation rate the state recorded two years earlier, the London-based Saudi daily Al Sharq Al Awsat reported today.
Complaints of rising prices have been widespread, driving the governement to impose price ceilings for a number of goods. Iran's Central Bank Governor Mahmoud Bahman attributed the increases to "psychological factors".
About $100 billion is spent by the Iranian government annually on subsidies. Growing domestic consumption has pressed the government to impose export bans on certain goods.